By Matt Hall
Merritt Hall Insurance
If you’re like me and all the entrepreneurs I work with, your business is, next to your family, your pride and joy. It’s a source of financial security for you and your family… your greatest financial asset.
In many ways, your business is more than just a business. It’s your life. It’s what gives you security and freedom. It’s your kid’s birthdays, their braces, your family vacations. It’s your house, your cars, your future. It’s the diamond you want to give your wife for your 10th anniversary. Or your 20th. Or 30th. Some day, it will be your retirement.
Your business is also, unfortunately, your greatest liability. There’s no shortage of potential disasters facing your business: fire, flood, theft, equipment breakdown, loss of key financial records, lawsuits from disgruntled or injured customers and even lawsuits from former or current employees… and probably disasters you haven’t even considered.
Potential disasters are always present.
Whether you’re doing accounting, consulting, coaching, sales and marketing or freelance projects, the risks are many. Whether you’re building websites or building bird houses in your garage, you need the right protection.
Unfortunately, 68% of homebased businesses are not properly covered by insurance. I hope yours isn’t one of them. According to a recent survey, 40% of home-based businesses have zero coverage, primarily because the owners thought their home insurance covered the business too. It doesn’t.
Many people think their homeowners policy is all they need, but homeowners insurance was not designed to handle business related activities or the exposures to risk they present. A typical homeowners policy may provide a small amount of coverage for business property (typically $2,500 or less), but NO coverage exists for business liability.
In fact, most homeowners policies specifically exclude business liabilities.
Even if you don’t have any employees, and you only work part-time, you still face risks that you need protection against… especially when it comes to liability.
Let’s face it. A lot can go wrong.
And just about anything can cost you your business – and your future – If you’re not prepared. What if a client suffers a large financial loss due to acting on your advice or because you missed an important deadline? What if your home is robbed and your client’s private information (SSN, credit, financials, etc) is compromised? The possibilities are limitless.
You don’t need to be a millionaire to be sued like one.
You don’t even have to do anything wrong to be named in a lawsuit, and even if it’s bogus, you still have to pay to defend yourself in court. Good attorneys don’t come cheap. The important question is: If you find yourself faced with a hefty lawsuit, would you prefer to have your insurance pay for it, or would you rather just pay for it out of your own pocket? Would a $30,000 lawsuit put a strain on your business? What about $50,000? $100,000? $1Million?
Every year thousands of businesses are sued into extinction.
In a perfect world, you could focus all your attention on growing your business and not worry about the risks, but there are simply too many risks to ignore. You can’t just cross your fingers and hope they go away, and you can’t sweep them under a rug. You must address these risks head-on by developing a risk management strategy that makes sense for your business and your budget.
Most home-based businesses can be protected for around $275 per year. That’s a small price to pay for security and peace of mind. So if you don’t have insurance for your business, call your agent today to get started. If you already have insurance, make sure your protection is adequate and up to date.
The right insurance plan will keep your family secure, your business protected and your assets out of the clutches of the courtroom.
